Do We All Need Term Insurance?

Life is uncertain; anything can happen to you at any time. So, you should keep yourself physically and financially secure to avoid any unforeseen circumstances. When you are in your 20s or 30s, you need to take care of your family which might be dependent on you for finances.

What Makes A Term Insurance Worth Considering?

For the financial security of your family, a term plan plays an important role. In a term insurance plan online, a fixed amount, i.e., an assured amount of money is given to the nominee in case of death of the policyholder during the policy term. If you survive a policy term, then no monetary benefit will be given to you.

Term insurances can be customized according to the needs of the customer and are extremely affordable. The premiums are quite low and need to be paid after a fixed time which can be easily managed. So, if some people depend on your income for a living then availing term insurance is extremely necessary for their future.

Some other things related to taking term insurance are:

How much term insurance you get depends on your annual income. If you earn around INR 4-5 Lakhs per annum, then the insurance value should be around one crore. As a rule of thumb, your insurance amount should be at least 15 to 20 times your yearly income so that your family can take care of themselves in case of a mishap.

Your family won’t be getting into any debt. With the term insurance, they should easily be able to handle all the expenses and EMI. It is a must if you want your family to remain financially stable in the moment of crisis, in case you are not there to look after them.

Term insurance also comes with tax benefits. Under Section 80(C) of the Income Tax Act, 1961 insurance premium is currently exempt up to INR. 1, 50,000. To add to that, as the money is being received by your family, Section 10(D) of Income Tax Act, 1961 provides tax relief as well.

Need of A Term Insurance for Working Groups

As a member of a working group, you need to consider taking term insurance. After your demise, there won’t be anybody to look after your family. In case you are the sole earning member of the family, then the family income will come to a halt until someone is ready to support your family soon enough.

And that is not all; term insurance policy can also provide benefits in the long run, especially for people in the working group. Here are some long-term benefits.

Life is uncertain, you may be fit and healthy today and hence getting term insurance is a hassle-free task. In case you get sick, then there is a chance that you won’t be eligible for term insurance. So, even if it looks like a financial burden now, it certainly outweighs the disadvantages in the long run.

It is a lot more reliable than investing in the public provident fund (PPF), mutual funds, shares, gold and real estate. In the scenarios above, you need to be alive to keep investing. But we know that life is full of surprises, and if it takes a nasty turn, the amount spent might not be enough.

Online purchase of term insurance:

In case you are not willing to deal with your local agent, then fear not; you can get the insurance directly from the companies by visiting their websites. You can also buy the term insurance plan from insurance aggregator website like Coverfox.com where you get to compare term plans from top-notch life insurers. It is just like buying any other product online. So, with a little bit of care, you can quickly get term insurance. What’s even better is that buying the insurance online is cheaper than the offline method.

Conclusion

We don’t know what life has in store for us, but you can secure the future of your family; for example, getting your children a college degree even though you won’t be there to see them. Therefore, investing in term life insurance plan is a must to secure the financial future of your family and dependents.